Question

Calculate the new balance using the previous balance method. Previous balance = $34.80 Finance charge = $0.75 New purchases = $83.21 Payments/credits = $5.50 New balance = $______ 111.76 113.26 124.26 -55.46

Answer 1

B. $113.26

Explanation:

Answer 2

Given

new balance = previous balance + finance charge + purchases - payments

previous balance = $34.80

finance charge = $0.75

purchases = $83.21

payments = $5.50

Find

new balance

Solution

Fill in the given information and do the arithmetic.

... new balance = previous balance + finance charge + purchases - payments

... new balance = $34.80 + 0.75 + 83.21 - 5.50

... new balance = $113.26 . . . . matches the 2nd choice